Rangers' new TV network is a good sign for future spending

After nearly two years of uncertainty, the Texas Rangers finally have a solution for their broadcast situation, the Rangers Sports Network.

It all started back in March 2023 when Bally Sports Southwest's parent company Diamond Sports Group (DSG) filed for Chapter 11 bankruptcy. A month later, a bankruptcy judge ordered the company to pay four Major League Baseball teams 50% of the money they owed, the Rangers were one of those teams.

What followed was a series of court battles which ended in DSG paying the Rangers $100 million to broadcast games in 2024. It would be the last season the Rangers would broadcast with Bally but at the time it was unknown what Texas' plans would be.

On the Rangers side, everything surrounding the television deal made team owner's Ray Davis and Bob Simpson limit on-field spending the last two years, leading President of Baseball Operations Chris Young and his staff to get smart with their budget and offseason acquisitions.

Hopefully those days are over now that the team's plans have been slowly revealed. On Jan. 15, online streaming service Victory+ and the Rangers shared on social media that the service would be the new streaming home for Rangers baseball.

Then on Monday, the Rangers officially introduced the formation of the Rangers Sports Media & Entertainment Company and the Rangers Sports Network as the new producer and distributer of Rangers baseball beginning this season.

It was followed with an announcement of agreements with cable providers AT&T U-Verse, DirecTV, DirecTV Stream and Spectrum. While the figures of the various cable and Victory+ partnerships are unknown, it could give the Rangers an increased payroll in free agency over the next few years.

What might the Rangers' revenue look like compared to other team owned RSN's?

The Rangers aren't the first MLB team to venture out on their own when it comes to broadcasting their games.

Several other organizations either own their network outright or receive larger revenue streams due to co-ownership or percentage of shares. Among those teams are the Chicago Cubs and Los Angeles Dodgers.

The Cubs' Marquee Sports Network is partially owned by the Cubs and Sinclair Broadcast Group. In 2022, it was reported the team earned $99 million in revenue from Marquee. On the higher side of things SportsNet LA, 50% owned by the Dodgers, reported around $196 million annually.

It's hard to tell exactly what the Rangers will make in revenue from Rangers Sports Network and its deals with partnering cable providers and Victory+ but with it has to be more than what they were going to make annually in their deal with Diamond Sports Group.

How will the Rangers increase spending on free agents with their new revenue stream?

Before we dive into this topic it's important to be realistic. The front office isn't going to start throwing around money and signing free agents.

Keep in mind the Rangers made their big-time free agent signings a few years ago when they committed nearly $1 billion to Jacob deGrom, Corey Seager and Marcus Semien. They also did what they needed to do this winter in re-singing Nathan Eovaldi to a 3-year, $75 million deal, among other pieces.

The roster is also made up of a lot of young players that are key to the team's future. It'll be a few years until the team has to start thinking about offering Evan Carter, Josh Jung and Wyatt Langford contract extensions.

This doesn't mean they won't spend money. They will just be wiser and methodical about it.

For example you can never have enough pitching. In 2026, Dylan Cease and Zac Gallen lead the pitching market and a year later Tarik Skubal and Michael King, among other reliable arms will be available. Then on the position side, next year's class is highlighted by Vladimir Guerrero Jr., J.T. Realmuto and Kyle Tucker and Kyle Schwarber.

The new network makes sense for a variety of reasons, including freedom to choose how they broadcast their own content and make it accessbile to fans. But the biggest pro will be the consistent revenue stream that'll lead to free agent signings and hopefully more World Series championships in Arlington.